The UK commercial property market has become best value in the world for investment, according to the annual strategy review by global property fund manager LaSalle Investment Management.

LaSalle, which manages about $52bn (£34.7bn) of assets, is to tell its clients that the UK has fallen first and hardest across global property markets, making it one of the most attractive areas for investment. The fund manager’s report, will give a positive end to what has been one of the worst years on record for the sector. Although it expects further modest price falls, it believes that so-called fair value – prices offering good rates of return compared with long-term bond rates – has been reached.

The manager will advise its clients to maintain a defensive strategy until 2011, focusing on the management of assets to maintain income flows rather than expansion by acquisition.

Financial Times